The problem is that the economic structure of movie making, and the way how movies are distributed insure that US made movies have a overwhelming advantage over almost any other movie industry.
Most cultures don't have as much mass appeal as commercial US mass culture. US culture has traditionally catered to the largest number of people possible, and there's nothing wrong with that. The US invented the concept of popular culture! But popular culture is not the only legitimate type of culture there is. In comparison, most european culture was created by cultural elites, aimed at them, and transmitted to larger shifts of the population only progressively and after some time has elapsed. This originally elitist cultural heritage constitutes nevertheless the backbone of European culture, even in such domains as religion, folklore, music, eating habits, manners and more generally daily life. That doesn't mean that European culture has no value or importance. Relatively few Europeans initially listened to Mozart, or read Goethe or saw a play by Moliere. But the influence of these guys was enormous.
The small, restricted, linguistically limited European markets cannot compete with the American market. That's why they must be protected. The same applies to Canada, specially to Quebec.